Corker: 'Real close' on Wall St. regs

A top Republican negotiator said Wednesday that senators are very close to reaching a bipartisan compromise on the consumer protection component of financial reform legislation – a deal that would give a major boost to a top Obama administration priority.

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Several Republican senators involved in the talks have made a new offer to Senate Banking Chairman Chris Dodd on a proposal to house a new consumer protection division within the Federal Reserve.

Sen. Richard Shelby (R-Ala.) first told reporters about the new offer, saying he and fellow banking committee members Sen. Bob Corker (R-Tenn.) and Sen. Judd Gregg (R-N.H.) made the offer to Dodd. The three Republicans, plus Sen. Mike Crapo (R-Idaho) who also sits on banking, were seen huddling after a Republican caucus lunch Wednesday.

Dodd delivered a counter-offer to the Republicans a few hours later, which Corker had in his hand while he talked to reporters at around 6:30 p.m.

“We’re real close. It’s going back and forth,” Corker said. “I think we’re getting to a place where Democrats and Republicans both can get comfortable with this. March 3rd has been the best day yet” in the negotiating process, said Corker, who agreed to work with Dodd several weeks ago after talks with Shelby broke down. Shelby and Corker appear to be working side-by-side now, or at least more closely.

“Chairman Dodd will judge proposals based on whether or not they provide the consumer protection watchdog with sufficient independence and authority to protect consumers,” said Dodd spokeswoman Kirstin Brost.

Earlier in the day, Corker (R-Tenn.) described the Republican offer as a handful of “tweaks,” but said the “big picture” of housing a consumer division in the Fed remains the same. He said he was waiting for further changes from Dodd but described remaining differences as minor ones.

A GOP Senate aide described the Republican offer as a set of broad ideas made in an effort to gain consensus.

Bridging the partisan divide on consumer protection would constitute a major breakthrough for financial reform in the Senate. Corker certainly painted a picture that talks poised for one.

“We’re very, very close. …If we just keep our heads down for the next four or five days, … working around the clock, I think we’re on the verge of having a bill that can get lots of Republican, lots of Democratic support,” Corker told reporters.

“It feels to me that March 3rd is a day when things are really congealing,” he added.

The four-to-five day timeline Corker described would mean expectations of a bill this week are wrong. Industry sources say they’ve been told to expect a bill Monday, with a committee vote the week of March 16, but no one’s holding their breath after two weeks of missed deadlines.

It’s notable that the Fed-based consumer division is still on the table after several key Democrats expressed deep skepticism about the plan, and House Financial Services Chairman Barney Frank blasted the idea Tuesday as “almost a bad joke,” given the “Fed bashing” he said Republicans had engaged in.

But more than one Republican involved in the talks suggested critics should wait to see the details before dismissing the proposal.

Corker specifically said the proposal would meet the four essential elements Dodd said any consumer division must have: a Senate-approved director appointed by the president, a dedicated funding source to shield it from congressional budget making, the authority to make rules, and the authority to enforce them.

“I think people, the more they hear about it on both sides of the aisle are beginning to get more comfortable with what’s being discussed,” said Corker.